Gogo Inc (GOGO)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 1.01 | 2.10 | 2.75 | 3.01 | 3.00 | |
| DOH | days | 360.92 | 173.47 | 132.93 | 121.35 | 121.62 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.01
= 360.92
The days of inventory on hand (DOH) metric for Gogo Inc has shown fluctuations over the years.
In December 31, 2020, the company had an average of 121.62 days of inventory on hand, indicating that it took approximately 121 days for the company to sell its inventory.
The DOH remained relatively stable in December 31, 2021, at 121.35 days, suggesting efficient inventory management practices were maintained during that period.
However, there was a notable increase in the DOH in December 31, 2022, to 132.93 days, potentially indicating potential issues with inventory turnover or an overstock situation.
The days of inventory on hand spiked significantly in December 31, 2023, to 173.47 days, which could be a cause for concern. A high DOH value may imply slow-moving inventory or potential liquidity constraints.
In December 31, 2024, the DOH reached a significantly elevated level of 360.92 days. Such a prolonged period highlights a potential inventory management inefficiency or a significant backlog of unsold inventory that could impact the company's cash flow and profitability.
Overall, the trend of increasing days of inventory on hand for Gogo Inc over the years warrants a closer examination of the company's inventory management practices and potential strategies to optimize its inventory turnover and liquidity position.
Peer comparison
Dec 31, 2024